Within a company, the logistics is that sector that deals with studying the processes that allow goods to be transported from the warehouse to the end customer, optimising costs but guaranteeing the predefined level of service. These processes include the supply.

To succeed in improving the company's performance, it is essential to rely on experts of the industry that are able to manage all components of the logistics flow.

The ITS Course in Logistics and Mobility aims to create professional figures able to deal with the planning, management and control of logistics flows. The students, thanks to face-to-face classes and internships in companies in the sector, will be trained to manage vehicles, goods and people, using the new information systems and paying great attention to the issue of environmental sustainability.

In the goods management, one of the fundamental processes to best manage a company's logistics is thesupply. By supply we mean that proceedings necessary for the replenishment of goods and raw materials. This phase is of fundamental economic and organisational importance for the smooth functioning of a company's production chain.

To ensure maximum efficiency, it is necessary to manage the storage in the warehouse. Today, thanks to the development of new technologies, an automated information system can support and facilitate the management and the planning procurement.

Procurement, all processes

The procurement process includes all operating cycles from the moment ofpurchase at reception of the product. It varies according to the type of company. If it is aproduction or industrial enterpriseprocurement is the link between the warehouse and production: raw materials are organised in the warehouse, transported to the production department and reorganised in other warehouses once the transformation process is complete.

If we talk instead about acommercial enterprise the process is simpler, because the product to be marketed does not have to undergo any further processing. In this case, the procurers will only take care of the storage stages.

The procurement cycle consists of several stages:

  • Needs analysisThis process is concerned with assessing the company's needs at the quantitative, qualitative and economic-financial level. It is important to be able to establish the necessary quantity of materials, stocks and services for the production process to proceed linearly;
  • Procurement Planningpurchasing must be optimised to obtain the necessary quantity of goods at the lowest possible price. The choice of suppliers is crucial in order to obtain competitive and advantageous prices while respecting the company's quality standards and delivery times;
  • Assessment of supply markets e requesting quotationschoosing the right supplier can be strategic for optimising production processes. To enable a competitive comparison between possible suppliers, a company contacts at least two, but typically five before choosing the most advantageous;
  • Evaluation of offers and decision on delivery timesThe choice of supplier must be made by balancing the needs arising from the production requirements of the company we are dealing with with the actual availability of goods declared by the suppliers;
  • Choice of PriceThe last factor to take into consideration before choosing a supplier is the cost of the goods, evaluating the unit prices of all competitors, the purchase lot versus price, i.e. the relationship between quantity and cost. In addition, one must check the correspondence between the required product specifications, quality, delivery time, and reliability of the supplier;
  • Reception and storageOnce the supplier has been chosen, we move on to the storage phase. Resources must be organised in the warehouses.
  • Procurement and shippingraw materials must be ordered in such a way as to enable the company to continue production in an efficient manner by avoiding the overstock.
  • Warehouse managementOptimising warehouse management increases the performance of the company's production cycle.

Author of the article

ITS MOVE - Editor